Mortgage Applications Continue to Decline
Gunshy lenders are as hesistant as ever to provide financing opportunities to borrowers. Mortgage applications have continued to decline, falling another 9% just in the last week. We seem to be in a bit of a downward sprial, credit tightening up as rates cotinue to increase, causing potential borrowers to hold off their purchases. Foreclosures continue to rise and the cycle continues.
Homeowners are still losing their homes at record rates, the highest in thirty years, as rates continue to rise for fifteen and thirty year fixed mortgages and one year adjustable rate mortgages.
We can expect the economic slump to continue as long as lenders stubbornly refuse to lower rates below the critical point which will kickstart our economy.
